U.S. Copper Prices Surge to Record $11,520/MT as Tariff Fears Grip Markets

Source: YouTube

Copper prices surged to a record high in the United States on Tuesday, with May futures on the COMEX exchange hitting $5.2255 per pound, or approximately $11,520 per metric ton. This figure eclipses the previous all-time high of $5.199 per pound ($11,460 per metric ton) set in May 2024 and reflects rising trader conviction that President Donald Trump will soon impose tariffs on imported copper. As the U.S. administration considers a 25 percent levy on national security grounds, investors are recalibrating their exposure to one of the most strategically vital industrial metals.

Record Copper Prices and Tariff Threats Reshape the Copper Market

The COMEX copper contract is up 29 percent year to date, widening the gap between U.S. and global benchmarks. The London Metal Exchange (LME) price settled Tuesday at $10,112 per metric ton, or roughly $4.59 per pound. The discrepancy of more than $1,400 per ton is the largest on record and has fueled aggressive positioning ahead of expected U.S. policy changes.

In February, Trump directed the Commerce Department to investigate whether copper imports threaten national security. Analysts at Goldman Sachs and Citigroup now expect a 25 percent tariff by year-end. The expected policy shift has prompted traders to flood U.S. markets with copper, with estimates pointing to 500,000 metric tons already en route.

Tightening Global Supply and Strategic Disruptions

The surge in copper shipments to the U.S. is straining global supply. Glencore’s temporary shutdown of its Altonorte smelter in Chile has further reduced output from a key exporter. In China, copper futures have moved into mild backwardation, suggesting firm near-term demand and tighter availability due to smelter maintenance.

Chinese refined copper exports rose 119 percent in the first two months of 2024. However, as copper flows toward the U.S., the rest of the world is left with diminished inventories. Mercuria’s head of metals trading, Kostas Bintas, projects LME copper could exceed $12,000 per ton if the trend continues.

China’s economy is also contributing to bullish sentiment. Recent data show stronger-than-expected industrial output and investment, adding demand-side pressure just as the U.S. tilts the supply equation through trade policy.

How Investors Should Respond to the Spike in Copper Prices

This rally is not just a tariff story. It also signals a broader shift in global positioning. Copper is essential for defense systems, electronics, electric vehicles, and grid infrastructure. As the U.S. pushes to reduce foreign dependence on strategic inputs, domestic miners stand to benefit.

Firms like Freeport-McMoRan and Capstone Copper are already attracting renewed interest. At the same time, manufacturers relying on imported copper may face rising costs and compressed margins, particularly in construction, automotive, and tech hardware sectors.

Traders are closely watching the spread between COMEX and LME futures. Analysts at Quantix Commodities and AMT note that longer-dated contracts show widening gaps, reinforcing expectations that tariff-driven volatility will persist through late 2025.

President Trump’s recent comments suggest that the tariffs may be less sweeping than initially feared. Even so, a limited implementation would likely sustain upward pressure on U.S. copper prices and continue disrupting international flows. Global investors must now factor policy risk into what was once a straightforward supply and demand equation.

Are rising copper prices affecting your business or investment strategy? Tell us what you think.

 Loading ...